• Actual Cash Value: cost to replace property minus allowance for property’s depreciation.
  • Binder: legal agreement between an insurance buyer and an insurance company or its agent temporary insurance coverage until a policy is issued.
  • Direct Repair Program: when collision shop and insurance company have contract to provide repairs to insurer’s claimants.
  • Direction to Pay: allows insurer to pay someone other than the insured (for example, the repair shop) for repairs.
  • Endorsement: an amendment to the policy.
  • Pre-inspection: inspection required to be completed by an insured in order to obtain physical damage coverage on his or her policy.
  • Repair Certification Form: explains claimant’s rights and obligations; certifies repair work has been completed; identifies repair shop and who made repairs; agreement that insured will allow insurer to re-inspect vehicle within reasonable period after form returned.
  • Surcharge: additional amount charged due to at-fault violations/ accidents.
  • Total Loss: when damage is so extensive that repair costs would exceed the total value of the vehicle or property.